BEFORE THE SOLE ARBITRATOR MRS.C.

DEEPA NANDHINI, ADVOCATE

IN THE MATTER OF ARBITRATION AND CONCILIATION ACT 1996
ARBITRATION CASE NO.BVV/CDN/FED/01/2023
BETWEEN

M/S. Fedbank Financial Services Ltd

Represented by its Authorised Signatory,
Mr.Sankararaman G
D.No.103, NavinsPresidum, B-Block, 5th Floor,
Nelson Manicham Road, Amanjikarai,
Chennai-600029

…CLAIMANT
AND
1. M/s. Vellimuthu Ayyanar Transport and Travels
Door No.335/2, Maruthu Pandiar Nagar,
1st Street, Sourashtra Teacher Colony,
Anuppanadi,Madurai,Pin - 625009

2. Mr. Thirunavukkarasu
Door No.335/2, Maruthu Pandiar Nagar,
1st Street, Sourashtra Teacher Colony,
Anuppanadi,Madurai,Pin - 625009

3. Ms. Suganya T
Door No.335/2, Maruthu Pandiar Nagar1st Street,
Sourashtra Teacher Colony,Anuppanadi,
Madurai,Pin - 625009
...RESPONDENTS

CLAIM STATEMENT FILED BY THE CLAIMANT

1. The Claimant above named is M/s. Fedbank Financial Services Ltd,

having its registered office and corporate office at Unit No. 511, A wing 5 th
floor, kanakia wall street, AndheriKurla Road, chakala, Andheri (East),
Mumbai-400093 and having regional office at D.No.103, NavinsPresidum, B-
Block, 5th Floor, Nelson Manicham Road, Amanjikarai, Chennai-600029
represented herein by its Authorised representative Mr.Sankararaman G.

The address for service of all notices and process on the Claimant is that of
its counsels M/S.V.BALASUBRAMANI & V.VADIVELAN, Advocates, Shri
Venkatesh Bhavan, 5thFloor, Old No.35, New No.71, Armenian Street,
Chennai – 600 001.
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The first Respondent above named is M/s. Vellimuthu Ayyanar Transport

and Travels Door No.335/2, Maruthu Pandiar Nagar 1st Street, Sourashtra
Teacher Colony, Anuppanadi,Madurai,Pin – 625009.

The Second Respondent above named is Mr. Thirunavukkarasu Door

No.335/2, Maruthu Pandiar Nagar 1st Street, Sourashtra Teacher Colony,
Anuppanadi,Madurai,Pin – 625009

The Third Respondent above named is Ms. Suganya T Door No.335/2,

Maruthu Pandiar Nagar 1st Street, Sourashtra Teacher Colony,
Anuppanadi,Madurai,Pin – 625009

The address for service of all notices and processes on the respondents is as
stated above.

2. The Claimant is a Non Banking Finance Company, incorporated under

the Companies Act, 1956 and is inter alia engaged in the business of
providing financial facility for the Small Ticket LAP. The Claimant is a Non
Banking Finance Company, incorporated under the Companies Act, 1956
and the operations of the Claimant Company are subject to Reserve Bank of
India’s guidelines and regulations. The Claimant is primarily engaged in the
business of providing housing finance which, inter alia, consists of
extending loans for purchase, construction, repairs, renovation and/or up
gradation of immovable properties and lending loan against property for
their business developments. The Claimant also would extend finance
facility for the purchase of house/immovable properties to the intending
borrowers in the nature of Loan against Property.

3. The Claimant submits that at the respondents approached for availing a

financial facility to the tune of Rs.17,27,000/- (Rupees Seventeen Lakhs
Twenty Seven Thousand only) in the month of July 2019. The Claimant had
acceded to the said request and the first respondent stood as borrower and
second and Third respondents stood as co-borrowers thereupon the
respondents availed financial facility to the tune of Rs.17,27,000/- by
executing the Loan agreement bearing No. FEDKRSSTL0480063 dated 16-
07-2019.

4. The Claimant further submits that that under the aforesaid contract,
the Claimant has disbursed the loan amount of Rs. 17,27,000/- (Rupees
Seventeen Lakhs Twenty Seven Thousand only)to the Respondents which
they agreed to repay in 180 monthly installments with finance charges and
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variable rate of interests thereon. As such said loan together with agreed
Rate of interest has to be paid in 180 monthly installments of Rs.26,517/-
(Rupees Twenty Six Thousand Five Hundred and Seventeen Only) each on
due dates as stipulated in the Agreement dated 16-07-2019. The first
installment commenced on 07.08.2019 and the last installment is due and
payable by 07.04.2044.

5. I further state that in consideration of the loan facility availed of by the

respondents the first respondent had deposited the title deeds pertaining to
the property situated at All that piece and parcel in Madurai District , Madurai
South Sub Registrar Office, Madurai Town, Survey Ward No-1, New Ward No-
54, New Block No-71, Anuppanadi, Maruthupandi Nagar, T.S.No.-2330 to an
extent of 7 cents on the Western side out of 936 Sq.Ft., area. The house site
and along with RCC house building Vahayartha Bearing Door No-335/2, Asst
No-115/054/05330 Within the following four boundaries:

North : House belongs to Kumaravel (Door No-311)

South: 20 Ft wide East-West Road
East: House belongs to Viswanathan (Door No.335/1)
West: Western portion of 459 Sq.Ft., belongs to Lakshminarayanan

Measurements:

East-West both sides -13 feet

South-North both sides 36 Feet
Totally-486 Sq.Ft.,

with intent to create mortgage in favour of the Claimant and created mortgage
in favour of the Claimant and the same was registered as Document No.6690
of 2019 on 27.08.2019. I further state that though the property is mortgaged
in favour of the Claimant to secure the amount due under the contract, in
view of the law laid by the Hon’ble Apex Court, the Claimant could not
maintain mortgage claim before the arbitrator and hence the Claimant could
not proceed against the property mortgaged as a secured creditor.

6. I state that the respondents agreed to pay the amount repayable in

180 monthly installments mentioned in the schedule to the said loan
agreement referred to above whether previously demanded or not. In
discharge of the obligation under the said agreement, the respondents have
made few perfunctory payments.
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7. The Claimant submits that, as per terms of the said agreement, the
respondents had undertaken to pay the installments on the due dates
mentioned in the schedule to the said agreement, without any delay or
default, whether previously demanded or not. Further, in the event of default
in payment of the installment amount or other charges under the said
agreement, the respondents are liable to pay additional finance charges at
36% p.a. from the date of default till payment and the same is without
prejudice to the Claimant’s other rights vested under the said agreement.

8. The claimant further submits that the respondents failed and or neglected
and or refused to make further payments of the subsequent installments, as
agreed this behalf. The claimant further submits that, as per Clause 18 of
the loan agreement, if the borrower (i.e. the respondent) commit or omit any
action which constitutes events of default as mentioned in Clause 18 of the
agreement, notwithstanding the covenants in the agreement referred to
above, the entire amount advanced by the Claimant shall become due and
payable together with interest and other charges payable under the contract.
In addition to that the Claimant is entitled to enforce the security created by
the borrower (i.e. the respondent) in its favour and sale the property. In case
of short fall even after the appropriation of the sale proceeds, the Claimant
is empowered to proceed further for recovery of the amount due under this
transaction.

9. The claimant further submits that since the default continued the Claimant
left with no other option but to recall the said loan facility in its entirety by its
loan recall notice dated 17.05.2022 and called upon them to pay the total
amount outstanding dues under the contract. Even after the said notice, the
respondents had not settled the contract.

10. The claimant further submits that as on 15.02.2023, a sum of

Rs.28,33,691/- (Rupees Twenty Eight Lakhs Thirty Three Thousand Six
Hundred and Ninety One only) is due and payable by the respondents. The
respondents are jointly and severally liable to pay the due amount together
with interest from the date of claim till realization.

11. The Claimant submits that the transaction between the Claimant and the
respondents being commercial in nature, the Claimant is entitled to claim
interest @ 36% p.a. on the claim amount which is also as per the agreed terms
contained in the said agreement.
 5

12. The Claimant submits that as per Clause-18 of the said Agreement, the
parties to the agreement have agreed that all disputes, differences and/or
claims under the said agreement shall be settled by Arbitration and such
dispute shall be referred to the Sole Arbitrator appointed by the Lender and all
such arbitration proceedings shall be held at Mumbai. The claimant further
submits that with intent to facilitate the respondents as they are based at
Chennai only, the claimant requested the respondents to accord their consent
by their letter dated 20.01.2023 to include Chennai as additional venue of
Arbitration for the convenience of the respondents and also sought their views
in case of any difference of opinion as regards the venue of Arbitration within
seven days failing which the venue of arbitration shall be treated as agreed
and accepted by them. The claimant further submits that the respondents did
not respond for the said notice despite receipt of the same.

13. The Claimant submits that in view of the dispute/claim arisen between
the parties hereto under the said agreement, the Claimant vide its letter dated
20.01.2023 addressed to the Learned Arbitrator under copy to the
respondents nominated the Learned Arbitrator requesting to arbitrate upon
the said dispute/claim under the said agreement.

14. Since the dispute/claim has arisen between the parties hereto in
connection with the rights, obligations and performance of the conditions by
the respondents in respect of the aforementioned agreement, the Claimant
prays that the Learned Arbitrator may be pleased to pass an award:

i. Directing the respondents, jointly and severally, pay to the Claimant a sum
of Rs.28,33,691/- (Rupees Twenty Eight Lakhs Thirty Three Thousand Six
Hundred and Ninety One only)together with interest @ 36% p.a. from
16.02.2023 till date of realization in full.

ii. Further direct the sale of the said property and adjust the sale proceeds
towards the amount due and payable to the Claimant.

iii. The Respondents may be directed to pay the cost of the proceedings.

iv. Such further or other reliefs as the Learned Arbitrator may deem fit and
proper in the facts and circumstances of the case and thus render justice.

Dated at Chennai on this the day of March, 2023.

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CLAIMANT
VERIFICATION

I, Mr. Sankararaman G S/o.Gopalasubramanian aged 42 years

Authorised Signatory of the Claimant , do hereby declare that what are stated
in para-s 1 to11 above are true to the best of my knowledge, belief and
information.

Verified at Chennai on this the day of March, 2023.

CLAIMANT
DOCUMENTS FILED BY THE CLAIMANT

S. DATE DESCRIPTION OF DOCUMENT

NO.
1 17.01.2023 Authoriztion Letter
2 08.07.2019 Loan Application
3 16.07.2019 Copy of Loan Agreement
4 27.08.2019 Copy of Memorandum of Deposit of Title
Deeds
6 17.05.2022 Copy of Loan Recall notice
7 20.01.2023 Copy of Reference Letter
8 15.02.2023 Statement of Accounts
9 15.02.2023 Foreclosure of Statement

Dated at Chennai on this the day of March 2023

CLAIMANT
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BEFORE THE SOLE ARBITRATOR

MRS.C.DEEPA NANDHINI,
ADVOCATE

BVV/CDN/FED/01/2023
M/S. Fedbank Financial Services
Ltd.,
REP BY ITS AUTORIZED
SIGNATORY,
Mr. Sankararaman G,
…CLAIMANT
Vs

M/s. Vellimuthu Ayyanar

Transport and Travels AND
ANOTHER
…RESPONDENTS

CLAIM STATEMENT FILED BY

THE CLAIMANT

M/S.V.BALASUBRAMANI
V.VADIVELAN

COUNSELS FOR CLAIMANT